my grandmother received a large check. what kind of bank account is this?

Question

what is a Controlled Disbursement Account?
my grandmother received a larged check from something called a Controlled Disbursement Account. her husband past away a year ago. what kind of account could this be? it has his name on the account and the check is paid to her. i am her guardian/power of attorney.

Answer 1

Sounds like an annuity. If it is, she gets a disbersement every year until it runs out.

Answer 2

I sounds like your grandfather setup his pension (from the company he worked for wheh he was of working-age), to pay out money to the surviving beneficiary (your grandmother) as a controlled disbursement.

Your grandmother will keep receiving these checks every 'payment period' until she dies. (I have never heard of this type of system that just 'ends' payment at a certain age -- it's always until death).

Find out who runs the pension account, if you need more information, or contact the HR department of the company your grandfather worked for -- they can point you in the right direction.

Answer 3

You need to take it to a bank so they can find out. Do not cash it yet. There are a lot of scams out there right now that send you what looks like legitimate checks and they are not and once you cash it they can get access to your accounts and personal information. This doesn't sound legit.

Answer 4

I means that it is controlled, she can not empty the account, it will be given out in an already predetermined amounts at predetermined times, for instance she will be disbursed $1000 per month.

Answer 5

I think it could be his retirement from the company he work for or he had some kind of investment and she get money from that. As her power of attorney you she be able to call the company who is sending it to her and get the details from them.